From AI Bubble to Breakthrough: How Alphabet Surpassed Microsoft in Market Cap
In an unexpected turn of events in the bustling world of technology, Alphabet, the parent company of Google, has risen to claim the third-largest market capitalization spot, leaving Microsoft in its wake. This comes as Alphabet’s new AI model, ‘Gemini 3,’ receives accolades and gains traction in the competitive AI landscape.
The Rise of Alphabet’s Gemini 3
Alphabet’s stock surge can largely be attributed to the debut of Gemini 3, a next-generation AI model that has captivated market analysts with its advanced capabilities. Unveiled on November 18, Gemini 3 features two variants: the feature-rich “Pro” and the high-performance “DeSync.” The industry was abuzz as the Gemini 3 Pro achieved a historic 1,501 points on the LM Arena Leaderboard, overshadowing previous models and competitors alike.
Market Applauds New Innovations
The Gemini 3’s prowess extends beyond scores, with its Pro version exhibiting substantial improvement in high-level problem-solving and reasoning tests. In particular, it recorded a 37.5% success rate in the “HLE” test, significantly surpassing the former leader, OpenAI’s GPT 5 Pro, which managed only 30.7%. Such achievements have driven Alphabet’s stock price to record highs since August, with a growth nearing 60% this year.
The Buffett Seal of Approval
Adding fuel to the fire of Alphabet’s skyrocketing success is the strategic investment by Berkshire Hathaway. Known for its value-focused stock picks, the Warren Buffett-led conglomerate’s decision to purchase 17.85 million shares of Alphabet speaks volumes. This move, revealed in a recent disclosure, marked Alphabet as a top-10 holding in Berkshire’s portfolio, igniting further interest in the tech giant.
Microsoft Feels the Pressure
While Alphabet revels in its ascendancy, Microsoft faces challenges amplified by the ongoing AI bubble debate. Their stock experienced a significant 12.9% drop from its peak, underscoring the volatile nature of tech investments. For the first time since 2018, Alphabet’s market valuation has surpassed Microsoft’s, a testament to the volatile tides of the technology sector.
As stated in 매일경제, the shifting dynamics in tech stocks highlight the growing influence of cutting-edge AI advancements on market perceptions. Whether Alphabet will maintain its momentum remains a question, but for now, the Gemini 3 model has certainly set the stage for new possibilities.
